Social enterprise scene in Pakistan
During my service at Halcyon in Washington DC, I realized that despite the fact where I have witnessed Pakistanis to be intelligent, smart and over the edge in their studies and work, there is not much representation of us around this part of the world. I mean we are definitely known for terrorism and harsh cultures but not when it comes to businesses, opportunities, education and making a positive impact around the globe. I don’t say there have not been things Pakistanis have done but I do want to emphasize that it is not enough. We need to change and reinvent our image for the world. Because otherwise, we would all be left behind, very very behind.
Since I work at the Incubator, I came across amazing entrepreneurs, ideas, ventures, social enterprises and different ecosystems and it drove me to do a little digging about a Social Enterprise Ecosystem in Pakistan and how it looks from here.
Pakistan is a South Asian country with a lower to middle-income index. We are almost 200 million with a new culture of social enterprises and startups, ready to flourish and yet there is, at present, no legislation or bill that supports social enterprises in Pakistan. There are steps being taken by the Planning Commission but all in too early stages and still not able to create any policies or procedures to support SE.
The amazing part is that the SE culture in Pakistan is mostly being led by the younger population and I am surprised how some of the more seasoned Pakistanis never gave it a thought?! But the picture is not all that bleak, there has been a huge increase in the SEs over the last 5 years and the main reason may be that it is only now that people are realizing the existence and importance of a social enterprise. And how a lot of social issues can be addressed along with being able to generate a decent revenue while making a social impact.
There is no particular ‘social enterprise’ legal registration form for social enterprises to register themselves in Pakistan. You could sign up to be either for-profit or non-profit and take various forms. Financial support and sustainability are THE biggest challenges being faced by social enterprises in Pakistan, in securing grant funding and capital be it as a debt or equity, these are the most highlighted obstacles. There is a noted lack of demand for products and services, recruitment and access to public services (electricity, water, etc.) which, surprisingly, seem of less concern, unlike for mainstream businesses where poor public services are seen as a major barrier.
However, the Social Enterprise sector is set to expand and deliver an increasing economic impact. Over 50% of social enterprises are seeking to develop new products and services, indicating that there is also a considerable stimulus for innovation. There appears to be a significant trend in terms of the role of women in social enterprise in Pakistan. Social enterprises are far more likely to be run by women than mainstream businesses and have four times as much female staff as their mainstream counterparts.
I have way too much to talk about this and I can go on for days, but it’s time to go home and get some other things done so I will get back to posting a sequel to this post very soon.
XOXO.